What is a rollover?

In the online Forex trading currency market, all deals must be concluded within two business days. The term "rollover" means a position closing price today and the opening of the same position at the price the next day that shows the difference in interest rates of two currencies.

In the international banking practice, the broker automatically replaces the previously open options position with a new long-term periods of performance at 17.00 Eastern Standard Time.

Rollover involves the sale and purchase of foreign currency in one working day. Eg. For transactions concluded on Monday for a period of performance is the environment.

However, if the position was opened on Monday and lasted the night, the period of performance will occur on Thursday. Exception is a position opened on Wednesday. Under the rules of the time of performance should come on Saturday, but since banks are closed on Saturdays, the value date is assigned on Monday. That is because the output positions open on Wednesday, are more profitable.

Transactions value date that falls on a holiday, also bring additional benefits. Forex traders can make profits with rollovers, depending on the direction of their positions and the difference in interest rates involved currency pairs.